Operating result of EUR 445 million versus EUR 508 million in 2Q18, reflecting lower private equity dividends at Netherlands Life and lower results of the reinsurance business, partly offset by improved results at Insurance Europe, Netherlands Non-life and Japan Life
Net result of EUR 606 million, up from EUR 463 million in 2Q18
Total cost reductions achieved to date of EUR 306 million versus the full-year 2016 administrative expense base
Value of new business (VNB) for 6M19 up 15.4% to EUR 236 million driven by Insurance Europe and Japan Life;
Total new sales (APE) of EUR 243 million, down 32.5% from 2Q18 at constant currencies
Solvency II ratio of 210% down from 213% at the end of 1Q19, reflecting movements in credit spreads and the deduction of the 2019 interim dividend, partly offset by operating capital generation
Holding company cash capital of EUR 2,220 million, including EUR 558 million dividends received from subsidiaries in all segments
2019 interim dividend of EUR 0.76 per ordinary share or approximately EUR 252 million
Delfin Rueda, CFO of NN Group: ‘NN Group has today reported an operating result of EUR 445 million for the second quarter of 2019. We see continued improvement in the performance of Netherlands Non-life, with a combined ratio of 95.8% for this quarter. Insurance Europe and Japan Life also posted higher results. Conversely, private equity dividends at Netherlands Life were lower than a year ago and the reinsurance business received higher claims. We continue to focus on enhancing the efficiency of the organisation, with total expense reductions to date of the units in scope of the integration of EUR 306 million compared with the 2016 full-year administrative expense base. We are committed to reducing the cost base by EUR 400 million by the end of 2020, however we don’t expect expense reductions to be linear going forward as some units are incurring costs to support their growth and to make necessary investments.
The value of new business increased 15% in the first six months of this year, mainly driven by an improved business mix and higher life and pension sales in Europe, as well as higher sales in Japan in the first quarter of the year.
Our capital position remains strong with a cash capital position of EUR 2,220 million at the end of the second quarter and a Solvency II ratio of 210%, after deduction of the interim dividend announced today of EUR 0.76 per ordinary share to be paid in September.
The announcement in June to acquire VIVAT Non-life represents a next step in strengthening the Non-life business in the Netherlands, as scale is essential to deliver attractive and sustainable customer propositions in this competitive market in the long term.
As part of our efforts to support the Paris Agreement on climate change, we implemented a coal policy. By placing investment restrictions on thermal coal mining companies and intensifying our dialogue with power generation companies, we aim to accelerate the transition to a low-carbon economy.
Earlier this week we announced the intended appointment of David Knibbe as CEO of NN Group, as successor for Lard Friese who has stepped down from this role, effective 12 August 2019. We are convinced that David, currently CEO of our Netherlands businesses, is the right person to lead NN Group during the next phase of its journey. Following this change in the leadership we have decided to reschedule the Capital Markets Update to mid-2020.
Last month we celebrated our fifth anniversary as a standalone company. Together with our 15,000 employees, we have guided NN Group from the IPO in July 2014 to the company it is today. NN is well-positioned for the future and fully committed to helping our customers secure their financial futures.’
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